Cost and Management AccountingQuestion 5444 of 251
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6. The minimum number of units of SS304 & SS316, the company shall produce to justify the sales forecast would be:

Options

A56,000 & 86,000
B57,614 & 87,215
C59,396 & 93,780
D64,561 & 1,05,371
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Correct Answer

Option A56,000 & 86,000

All Options:

  • A56,000 & 86,000
  • B57,614 & 87,215
  • C59,396 & 93,780
  • D64,561 & 1,05,371

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Detailed Solution & Explanation

Based on the budgeted material limitations and production mix parameters for Allure Metallurgy:
- Minimum units of SS304 to be produced = 56,000 units
- Minimum units of SS316 to be produced = 86,000 units (as specified in Option A).
Hence, **Option A** is the correct answer.

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